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This paper offers a comprehensive analysis of algal-based membrane bioreactors (AMBRs) and their potential for removing hazardous and toxic contaminants from wastewater. Through an identification of contaminant types and sources, as well as an explanation of AMBR operating principles, this study sheds light on the promising capabilities of AMBRs in eliminating pollutants like nitrogen, phosphorus, and organic matter, while generating valuable biomass and energy. However, challenges and limitations, such as the need for process optimization and the risk of algal-bacterial imbalance, have been identified. To overcome these obstacles, strategies like mixed cultures and bioaugmentation techniques have been proposed. Furthermore, this study explores the wider applications of AMBRs beyond wastewater treatment, including the production of value-added products and the removal of emerging contaminants. The findings underscore the significance of factors such as appropriate algal-bacterial consortia selection, hydraulic and organic loading rate optimization, and environmental factor control for the success of AMBRs. A comprehensive understanding of these challenges and opportunities can pave the way for more efficient and effective wastewater treatment processes, which are crucial for safeguarding public health and the environment. [Display omitted] • Algal-based MBRs effectively remove hazardous contaminants. • Challenges remain in biomass accumulation, nutrient limitation, and toxicity. • Mitigation strategies include system optimization and use of renewable energy. • Potential applications beyond wastewater treatment include biofuel and bioproduct production. [ABSTRACT FROM AUTHOR]